You probably don't realise that over your working life, you could spend more on KiwiSaver fees than on your mobile phone and power bills.
On average it looks like this.
Lifetime Mobile Phone Charges *
* Source. Commerce Commission Annual Telecommunications Monitoring Report 2015. $53 monthly ARPU for business user. Assumes 1% real rise p.a.
Okay, got it
Lifetime Power Bills **
* Source: Powerswitch. Assumes cost for medium Auckland household in 2016 of $1976, divided by household of 3 persons ie. $55 per person per month. Assumes 1% real rise p.a.
Okay, got it
Lifetime KiwiSaver Fees ***
* Average fee from ‘Sorted’ for a Growth KiwiSaver Fund, assuming 45 years saving, $47,000 average lifetime salary, rising at 1% real. PIR of 17.5%, and 6% total contributions.
Okay, got it
So we strip out some of the costs others charge, and give all profits back to you.
Simple.
profit
shiny offices, advertising and commissions
what it costs
yours
communication
what it costs
Switch to Simplicity and you could have around
589,000 by the time you're 65.
Calculated by comparing average fees charged for KiwiSaver growth funds vs our growth fund. Assumes growth rate of 6.67%, 6% contributions, PIR of 17.5% and 1% pa salary growth. All calculations are Simplicity estimates. This example is for illustration purposes only, to show the compounding effect of reduced fees. Actual performance will differ, and no particular return can be promised or guaranteed. Investment in a growth fund may not be appropriate and investors should get financial advice. All figures supplied by Melville Jessop Weaver
* Assumes $4.00 for a coffee, $3000 per flight to London and $660 annual power cost per person.